A tax declaration is a statement submitted by an individual or employee to declare eligible investments, deductions, and exemptions for income tax purposes. It enables employers to estimate an employee's taxable income and deduct the appropriate amount of tax from salary during the financial year. Tax declarations may include investments in ELSS mutual funds, life insurance premiums, Public Provident Fund (PPF), National Pension System (NPS), and other eligible tax-saving instruments under applicable tax laws. Submitting an accurate tax declaration helps ensure correct tax deduction and reduces the chances of excess tax being deducted from salary.
